RIVER STAGE PROJECT
Rainy River Gold Camp, north-western Ontario
River Stage is a 2,480 acre mineral claim package located in the Dash Lake and Brooks Lake areas in the central part of the Rainy River Gold Camp, Ontario, approximately 90 kilometers southeast of the Town of Kenora, Ontario.
The Rainy River Gold Camp is one of the more active gold exploration camps in Canada with a new major gold mine under construction in the camp, other signifiucant deposits in the camp, and a number of exploration companies active in exploration and acquiring ground positions.
New Gold Inc. is constructing the new Rainy River Mine at a 2,100 tonne per day processing rate, about 30 miles south-east of River Stage.
First Mining Finance ("First Mining") is immediately adjacent to River Stage with claims hosting the Cameron Lake Gold Deposit (the “Cameron Deposit”). The Cameron Deposit is an advanced stage exploration project which, according to the First Mining website has a Total Measured and Indicated Resource of 5,530,000 tonnes grading 2.61 g/t for a contained 464,000 oz. Au in addition to a Total Inferred Resource of 6,535,000 tonnes grading 2.54 g/t for a contained 533,000 oz. Au.
A number of other exploration companies are also active in the camp including Emerald Lake, Frontline Gold, Golden Peak, Golden Resources, Kesselrun Resources, Kingsbay, Mineral Mountain, and Vanity Capital.
River Stage is adjacent to the junction of the Cameron Lake and Burdet Lake Faults. The Ontario Geologic Survey (“OGS”) recently released a new airborne geophysical survey over the Rainy River Gold Camp, including the River Stage, and the Company’s understanding is that the OGS will be conducting further field work in the Rainy River Gold Camp.
New Gold's Rainy River Mine
In order to earn a 100% interest in the River Stage, the Company paid $8,000 and issued 100,000 common shares of the Company; paid another $8,000 on the first anniversary in June, 2016; a further $12,000 is due on the second anniversary in June 2017; and $25,000 is due on the third anniversary in June 2018. In addition, a 1.5% net smelter royalty will be retained by the vendor which the Company may reduce by 50% by paying $250,000.